Arnold has led the Sky Blues on an eight-game winning run in all competitions having scored 22 goals without conceding any.

Arnold spent three seasons with the Dutch club as a player.

He is in his final year of his contract and could join Breda as early as June.

Breda have been monitoring Arnold closely and are hoping to secure his services to help build their youth development program. 

Breda’s initial offer is believed to be less than Arnold's current Sydney FC deal, however it does include massive bonuses in relation to promotion to the Eredivisie and player sales.

The A-League-winning coach has been credited for developing local talent including Mat Ryan, Tom Rogic, Alex Gersbach, Bernie Ibini and Trent Sainsbury.

He has also been instrumental in the sales of players such as Mustafa Amini and Rostyn Griffiths. 

Arnold's agent Tony Rallis declined to comment on Breda with Sydney FC yet to formally discuss extending the mentor's current deal.

"In all my conversations with Graham, we talk about him being at Sydney FC long term and building for the future. I'm as committed to that idea as ever and I'd like to think he'll be with us for many seasons to come," Sydney FC chairman Scott Barlow said in April. 

Sydney FC sit atop of the A-League ladder after four rounds following their 2-0 win over the Jets, their fourth win in as many games.

"It's round four. It's nothing. For me there's so much more potential in this team," Arnold said. "They're starting to believe more and more of the quality of this team and what it can do. I think we'll evolve as the season goes on."